Canadian Investments in Small Business Grow, as Does Gap Between Public and Private Sector Jobs
Questions still swirl around the “red tape” processes that have been said to make it more difficult for small businesses to operate in Canada. From higher tax rates to the clutter caused by a system that hasn’t been properly streamlined, small businesses in Canada have had a tough run, though recent numbers point to some small changes for the better.
But another issue exists that indirectly contributes to the detriment of small businesses, and that’s the disproportionate hiring of public sector workers. With the public sector growth rate nearly doubling that of the private sector from 2003 to 2013, it begs the question: how is the Canadian economy expected to benefit if the lifeblood of the economy is stagnant?
Better Tax Rate and More Investments
One of the biggest grievances faced by small businesses in Canada is the tax rate. So what is the Canadian government planning to do in response to this concern? A two percent decrease was said to be in the works during the last Federal budget talks, which would take the small business tax rate from 11% down to nine percent—a marked difference. If officials follow through on this plan, it will help remove some of the weight small business owners across the country currently carry due to taxes.
On the proactive side of things, investments in small businesses have risen over the first quarter of this year. Most provinces in Canada saw an increase between one and four percent, with Manitoba and British Columbia leading the way at four percent, and the Maritime provinces sitting in a close second at about three percent. Ontario, Canada’s most populated province, saw a growth of one percent, while only Alberta and Saskatchewan saw decreases of one percent. All of this stems from a one percent national increase in investment spending.
Managing the Public/Private Sector Growth
One statistic that has been somewhat alarming is the disparity between growth in the public sector and that of the private sector. Over the past decade up until 2013, the public sector has grown by more than 26% and now accounts for 21% of total Canadian employment. During that same time period, the private sector only managed to grow by about 10%, which is about half of the rate of growth for the public sector and accounts for over 60% of the working class. About 15% of working Canadians identify as self-employed.
When assessing the overall health of the country and its economy as it relates to growth, filling public sector positions does little to push Canada forward. It will take the continued efforts to reduce the red tape currently prohibiting the growth of small business, further investments for a prolonged period of time, and innovative ideas both from individuals hoping to succeed in running their own enterprise and from other agencies to ensure that pathway is as clear as possible and the support systems are in place to encourage small business growth across the country.
What Does This All Mean For Small Businesses?
Opportunity. The increase in investment and decrease in tax rate means small businesses in Canada need to take advantage now. And if you’ve learned anything from our articles, one of the most effective means of establishing your brand is through direct marketing, more specifically, a combination of direct mail and email marketing.
Direct mail is able to pinpoint specific targets and convert your potential consumer rates at a higher rate than most other forms of marketing. Blend that with an email campaign that consistently provides relevant content to subscribers, along with call to action for promotions or exclusive product offerings, and your business has set the foundation for increased revenue and improved customer relations.
It would be negligent not to mention the importance of an online presence. But maximizing your website is done in concert with direct marketing efforts. That means you need to use your direct mail pieces along with working your email list to drive traffic to your site where you can further convert consumers.
Macromark works with countless small businesses across Canada and all of North America in helping them to reach their goals and targets. With close to 30 years of direct marketing experience, including direct mail and e-mail marketing, Macromark has established itself as a leader in its industry. For more information about how Macromark can help boost your small business, contact us today.